Which of the following statements about activity measures is false?
A) The activity measure should be one that varies in a similar pattern to the way that variable overhead varies
B) As automation increases, increasing numbers of firms are switching to measures such as machine hours . or process time for their activity measures
C) Dollar measures are a good basis because they are subject to price-level changes and fluctuate more than physical measures
D) All of the above are true

Question

Quizplus · Accepted Answer

Dollar measures are often not preferred for activity measures because they can be influenced by price-level changes, making them less stable compared to physical measures like machine hours or process time. This contradicts the statement in option C, making it false.

Which of the Following Statements About Activity Measures Is False